Earlier today, current and former Meta executives and directors settled a US shareholder lawsuit alleging that board mismanagement led to billions in penalties over data privacy failures, just after the trial opened in Delaware.
The plaintiffs, three minority shareholders, claimed that Meta's board "knowingly" failed to abide by a 2012 FTC consent decree. They also accused the board of protecting CEO Mark Zuckerberg by approving a $5 billion 2019 FTC settlement without an internal investigation, in exchange for the FTC dropping Zuckerberg as a defendant. In addition, the plaintiffs alleged that Zuckerberg "unlawfully sold billions of dollars of Meta stock" because of material nonpublic information. The details of the settlement were not disclosed.
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